The EUR/JPY pair is declining, currently trading at 160.55, fueled by rumors of the Bank of Japan (BoJ) potentially ending negative interest rates. Market focus is on upcoming March 13 wage negotiations, as significant salary increases could trigger a BoJ rate hike.
Key Factors:
- BoJ Policy Speculation: The possibility of ending negative rates pressures the EUR/JPY pair.
- Wage Negotiations: Outcomes could significantly impact BoJ’s policy decisions.
- Japanese GDP: Q4 data shows the economy narrowly avoided recession.
Technical Outlook:
- Bearish Bias: EUR/JPY breaks below key support levels, signaling continued bearish pressure.
- Downside Target: Sellers could aim for the top of the Ichimoku Cloud (158.90/159.00) with a break below 160.00.
- Potential Rebound: A move above 161.00 could lead to a retest of the Kijun-Sen (161.31).